{"id":1004048845,"date":"2012-10-22T06:37:05","date_gmt":"2012-10-22T14:37:05","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004048845"},"modified":"2022-12-08T14:33:51","modified_gmt":"2022-12-08T22:33:51","slug":"thor-equities-refinances-chicagos-palmer-house-hotel-for-365m","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/thor-equities-refinances-chicagos-palmer-house-hotel-for-365m\/","title":{"rendered":"Thor Equities Refinances Chicago\u2019s Palmer House Hotel for $365M"},"content":{"rendered":"<p><em>By Scott Baltic, Contributing Editor<\/em><\/p>\n<div id=\"attachment_100404\" style=\"width: 298px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/3428900164_249576ede6_o.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-100404\" data-attachment-id=\"1004048847\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/thor-equities-refinances-chicagos-palmer-house-hotel-for-365m\/3428900164_249576ede6_o\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/3428900164_249576ede6_o.jpg\" data-orig-size=\"800,640\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"3428900164_249576ede6_o\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/3428900164_249576ede6_o.jpg?w=800\" class=\" wp-image-1004048847\" title=\"3428900164_249576ede6_o\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/3428900164_249576ede6_o.jpg\" alt=\"\" width=\"288\" height=\"230\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/3428900164_249576ede6_o.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/3428900164_249576ede6_o.jpg?resize=300,240 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/10\/3428900164_249576ede6_o.jpg?resize=768,614 768w\" sizes=\"auto, (max-width: 288px) 100vw, 288px\" \/><\/a><p id=\"caption-attachment-100404\" class=\"wp-caption-text\">Palmer House lobby<\/p><\/div>\n<p>Chicago\u2019s iconic, historic (dates to 1925) Palmer House Hilton luxury hotel has been refinanced by owner Thor Equities to the tune of $365 million, it was announced last week by Jones Lang LaSalle, which arranged the floating-rate financing package.<\/p>\n<p>JP Morgan took the lead, JLL executive vice president Matt Comfort told <em>Commercial Property Executive<\/em>, and subordinate tranches were passed to four mezzanine lenders. \u201cA component of this will be securitized, most likely,\u201d he added.<\/p>\n<p>Comfort and JLL senior vice president Keith Largay led the team on this transaction, along with managing director Dave Hendrickson and vice president John Nugent.<\/p>\n<p>Another party who was privy to the transaction, but declined to be quoted publicly, told <em>CPE<\/em> that JP Morgan\u2019s share was $175 million and that the four mezzanine lenders were Capital Trust Inc., Macquarie Group, Apollo Global Management and Och-Ziff Capital Management Group.<\/p>\n<p>The 1,639-room, 24-story hotel occupies two-thirds of a block in Chicago\u2019s Loop, between State Street and Wabash Avenue at Monroe Street, and features 57,000 square feet of street-level retail and a 177-space underground valet parking garage. The Palmer House is reportedly Chicago\u2019s second-largest hotel, after the Hyatt Regency Chicago on East Wacker Drive.<\/p>\n<p>\u201cThe strong cash flow of the Palmer House Hilton was integral to securing financing for the loan,\u201d said Comfort.<\/p>\n<p>\u201cA loan this size has inherent complexities,\u201d Largay added. \u201cJLL ran a targeted process that created options for Thor and allowed us to achieve the best terms in the market.\u201d<\/p>\n<p>According to Crain\u2019s Chicago Business, Thor Equities used the five-year loan package to retire roughly $363 million in loans taken out in 2006. The refinancing reportedly values the property at about $487 million.<\/p>\n<p>After more than 60 years of owner operations by Hilton Hotels, the Palmer House was acquired by a Thor affiliate for $230 million in August 2005. The new owner completed a $131 million renovation in 2008, with refurbished guestrooms, public spaces and meeting spaces and other improvements.<\/p>\n<p>Thor Equities specializes in premier retail and mixed-use assets in high-density areas in the United States, Latin America and Europe.<\/p>\n<p>Third-quarter figures from Jones Lang LaSalle Hotels indicate that, in parallel with the overall Chicago hotel market, the downtown Chicago upper upscale\/luxury segment is surging. As of the end of September, average occupancy was 86.2 percent, a 7.6 percent increase from 12 months earlier; ADR was $233.98, a 10.8 percent increase from 12 months ago; and RevPAR was $201.74, a 19.2 percent bump from this time last year.<\/p>\n<p>Chicago hotel transactions are also up, according to JLL. The YTD total is $544.8 million, compared to $308.1 million at this point in 2011.<\/p>\n<p>Also announced by JLL last week was the $103 million refinancing of two metro-Seattle multi-family properties, The Reserve and The Sanctuary, in Renton, Wash. The properties, which total 880 units, are owned by Fairfield Residential Apartments, L.L.C. Prudential Life Insurance Co. provided the seven-year, fixed-rate loans.<\/p>\n<p>&nbsp;<\/p>\n<p align=\"center\">\n","protected":false},"excerpt":{"rendered":"<p>Chicago\u2019s historic Palmer House Hilton luxury hotel has been refinanced by owner Thor Equities to the tune of $365 million, it was announced Wednesday by Jones Lang LaSalle, which arranged the floating-rate financing package.<\/p>\n","protected":false},"author":882,"featured_media":1004048847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21751,21783,13,21742],"tags":[],"class_list":["post-1004048845","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-hotel","category-investment","category-midwest","category-latest"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - 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